Pakistan Establishes Digital Asset Authority to Oversee Crypto
Pakistan is taking a significant step towards regulating its blockchain and cryptocurrency sector. The Ministry of Finance has reportedly approved the creation of the Pakistan Digital Assets Authority (PDAA), a dedicated body designed to oversee and regulate the burgeoning digital asset landscape in the country. This move signals a shift towards embracing digital finance and Web3 innovation, aiming to protect consumers and attract global investment.
What Will the PDAA Do?
The PDAA will be responsible for a wide range of regulatory functions, including:
- Licensing and regulating crypto exchanges.
- Overseeing custodians and digital wallets.
- Regulating tokenized platforms, stablecoins, and decentralized finance (DeFi) applications.
According to a report by PTV, a state-owned broadcaster, the PDAA will also focus on tokenizing national assets and government debt. This includes facilitating the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining and supporting startups in building blockchain-based solutions.
Leadership’s Vision
Muhammad Aurangzeb, the Federal Minister for Finance and Revenue, emphasized the importance of this initiative. He stated that Pakistan needs to regulate not just to catch up with global trends but to lead in the digital asset industry. He believes the PDAA will create a future-ready framework that protects consumers, attracts global investment, and positions Pakistan at the forefront of financial innovation.
The Role of the Cryptocurrency Council
The establishment of the PDAA was partly influenced by the Cryptocurrency Council, an advisory body launched in March. This council includes prominent figures like former Binance CEO Changpeng Zhao, who serves as an advisor. Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, highlighted that this initiative is about more than just crypto; it’s about transforming Pakistan’s financial future by expanding access and creating new export channels through tokenization, digital finance, and Web3 innovation.
Pakistan’s Evolving Crypto Landscape
Pakistan’s journey with cryptocurrency has been marked by initial skepticism. In May 2023, the former Minister of State for Finance and Revenue expressed concerns that Pakistan would never legalize cryptocurrencies due to potential conflicts with regulations set by the Financial Action Task Force (FATF). However, the country has since shown a growing interest and adoption of digital assets.
Despite earlier reservations, Pakistan ranked ninth in Chainalysis’ 2024 crypto adoption index, driven by strong retail adoption and transactions at centralized services. Data from Statista indicates that Pakistan’s crypto market is experiencing rapid growth, with the number of crypto users projected to exceed 27 million by 2025. Revenue in the Pakistan crypto market is expected to reach $1.6 billion in 2025.
Conclusion
The creation of the PDAA represents a significant step forward for Pakistan in embracing the digital economy. By establishing a clear regulatory framework, Pakistan aims to foster innovation, attract investment, and protect consumers in the rapidly evolving world of digital assets. As reported by PTV and other sources, this move could position Pakistan as a key player in the global crypto landscape.
Category: Uncategorized
Source: Cointelegraph
Disclaimer
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